Meaning
Commercial metric that calculates the total cost of a battery cell or pack delivered to the factory door, including purchase price, freight, customs duties and handling fees. Monitoring the landed cost per kilowatt hour is necessary for automotive and stationary storage companies to accurately calculate their manufacturing margins. This metric ensures that supply chain decisions are based on the total expense of acquisition rather than the ex works price.
Supply Logistics
Transportation and import duties can add a substantial premium to the base manufacturing price. The supply logistics of the battery components must be optimized to minimize transit times and associated tariffs. Sourcing from local manufacturers can reduce these expenses and mitigate geopolitical risks.
Vendor Comparison
Comparing suppliers solely on the unit price can lead to erroneous procurement decisions. A vendor comparison of the cell suppliers must incorporate all shipping and regulatory fees. This calculated cost determines the true economic value of the supply contract.
Margin Protection
Unplanned shipping increases can erode the profitability of the finished battery packs. The margin protection strategy relies on long term shipping agreements and hedging strategies to stabilize the landed cost per kilowatt hour. Sourcing teams use this data to negotiate multi year supply contracts.